Transwestern Launches Open Season for Permian Gas Line

SECAUCUS, NJ (DTN) — Energy Transfer’s Transwestern Pipeline announced Friday (9/26) that it has launched a binding open season for an expansion of its natural gas pipeline system to move significant new volumes out of the prolific Permian Basin.

Pending necessary regulatory approvals and permits, the Desert Southwest expansion is currently slated for completion in the fourth quarter of 2029.

The timeline reflects the scale of the infrastructure build and the time typically required to secure federal and state authorizations for interstate gas projects.

The expansion is designed to boost takeaway capacity for gas drilled in West Texas and New Mexico, routing supplies to key markets in the Desert Southwest, including existing and new delivery points in New Mexico and Arizona.

The upgrade, which includes new large-diameter pipe, additional compression, and metering facilities, will transport a minimum of 1.5 bcfd. The capacity is critical as Permian producers continue to ramp up oil and associated gas output, frequently straining existing infrastructure and leading to price volatility.

The expansion underscores Energy Transfer’s strategy of capitalizing on the U.S. shale boom. The Dallas-based energy firm owns and operates one of the nation’s largest and most diversified portfolios of energy assets, with approximately 140,000 miles of pipelines crisscrossing 44 states.

Transwestern, which owns and operates a sprawling network under Energy Transfer’s umbrella, said it has secured enough binding commitments to greenlight the project.

The month-long open season, which began Friday at noon CDT and runs through October 25, will focus on gauging further shipper interest to determine the project’s final design and optimal size.